The Bitcoin Handbook - Digital Currency Tutorial: Where and How to Buy Bitcoins?
In "The Bitcoin Handbook: Tutorial for the Digital Currency", the authors Tobias Gillen and Felix get to know everything about the digital currency Bitcoin. As a beginner, they want to slow down and take other beginners, as well as invite scientists to participate in the trip and to supplement important points. In this chapter we deal with the question of how to get into the possession of Bitcoins without producing it. To this end, we present you the suitable Bitcoin Exchanges today. // by Felix
Her with the bitcoins
After finally becoming the proud owner of one or more digital walletes, the Bitcoin world is finally open to us. A small but decisive detail is still missing. We have to fill our new wallet of course somehow.
There are two possibilities: you can participate in the production of Bitcoins (Mining) in some way, or you can simply buy them with a different currency at a certain exchange rate.
We have already learned that and how we can produce bitcoins or participate in a mining pool. We do not have to. Just as well, we can easily exchange our euro (or other currencies) into bitcoins. To this end, there are now a number of different platforms. This variant is much simpler compared to the effort to manufacture it by itself.
The search for a suitable platform
In the meantime, there are not many, but very many providers, where you can purchase bitcoins. They differ in many respects from each other.
With some vendors you need on the platform itself its wallet, with others you can transfer the money to your own wallet. In the case of exchange offices (overview) you buy your bitcoins directly from a provider, in marketplaces (overview) you buy with other users. Depending on the provider, different exchange rates and fees are called up.
An important difference is also the question, whether one on the basis of live courses or fixed courses its bitcoins exchanges. Live courses are constantly changing as fixed exchange rates change less frequently. Of course, it also plays a role, whether a platform has many users, that is: high supply and demand.
Of course, the methods of payment differ. In addition to cash and transfer, some providers also allow Bitcoin purchases via credit cards or gift vouchers. For German users, the question is certainly where to get bitcoins for Euro. Bitcoin Charts provides a handy, if not complete, overview.
As always: safety concerns
Safety aspects play an important role. This is known since the big failure of the bitcoin trading platform Mt.Gox in February 2014. The exact circumstances of the robbery are still unclear, but in many cases it is rumored that the scandal lay above all on a lack of safety standards.
In contrast to a wallet, where the keys are stored and how transactions are verified, it is necessary to look at other aspects in a trading platform in order to distinguish good from bad security standards.
Jörg Platzer from Bitcoins, the German federal association, introduced the so-called "proof of reserves" as an important criterion. At the same time, the providers must be able to encrypt at any time cryptographically, to be in possession of the Bitcoins.
I also find other factors, such as trustworthiness, cooperation with bank houses or private insurance companies. Of course, in case of doubt also always a closer look at the web presence of the respective provider. An unprofessional appearance, unclear GTC or a dubious company seat on me in any case deterrent.
Some providers at a glance
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Bitcoin_logo_600x150
The Platzhirsch on the German market is Bitcoin.de. Since 2011 one can act with other users Bitcoins. This is not necessarily the fastest, but a comfortable way. An account is created easily. About 2-factor identification and a website that takes it very seriously with logging makes this account a good impression.
To make sure you can get started, you have to verify your bank account and the mobile number. If you do, Bitcoins can trade up to 2,500 euros per calendar year and a maximum of 1,000 euros per month. If you want more, you must register yourself with a complete identification. However, this is only for members who have acted at least 12 bitcoins in 12 months.
The trade takes place on the in-house marketplace. There are supply and demand prices, always with the indication from which land supply and demand originate and whether the user has completely identified itself. Whoever buys a bitcoin then receives the counterdata of the counterparty and has to transfer the money to him. As soon as the seller confirms the payment receipt, one receives his bitcoins. As you can easily imagine, this is not the fastest way. The process takes 2 to 6 days.
Those who do not want to wait so long have the opportunity to participate in the "Express trade". Bitcoin.de now offers this new feature to customers of the Munich Fidor Bank, which has been cooperating for a long time. To be honest, I had always understood this cooperation so far that my bitcoin stocks are also covered by the European Deposit Guarantee Scheme. This is not so. The Bitcoin stocks are expressly excluded under the terms of the GTK. As you can see from the FAQ, no direct payments and withdrawals via Bitcoin.de are possible.
Octopuses
Kraken has developed a well-known name since its launch in 2011. The Bitcoin Exchange from San Francisco is operated by Payward, Inc. In fact, the company has achieved important milestones in recent years. Since September 2013 the XBT, the ISO currency code for bitcoin, which was known until then under BTC, has been oriented. In April 2014, Kraken has also managed to be listed at the official Bloomberg terminal.
Kraken also gained special trust through a successful proof of reserves audit, as well as through the cooperation with the Munich Fidor Bank. Above all, the company has been able to gain a foothold in Europe. Germany is however exempted from the deal. Here the Fidor Bank cooperates with Bitcoin.de.
Kraken is currently not available in English. A simple account is still created quickly, but you can not start with that much. By default, one is classified as animal 0. This means that neither cash nor cash is possible. For this, you need higher animal numbers, but for which certain proofs are necessary.
German users must at least Tier 3 proof and need their personal data, address verification, residence permit as well as a photo of themselves with identification. The large effort of the registration is rewarded with an extensive trading surface. It reminds a bit of an exchange trading account. Accordingly, certain order types can be entered. Limit orders, for example, where you buy only from a certain price automatically or stop loss orders, where positions are automatically sold if they fall below a certain value.
Margin trading, ie the trade in lifting effects, has also been advertised on the website. This allows you to spend more money than is available on the account and has a leverage effect in its speculation. However, this increases the profit potential, as does the risk of loss.
Circle
Widget-1
Circle is a fairly new provider, which has been available in the USA since March 2014 and worldwide since September. Behind them are financially strong donors. In April 2015, Goldman Sachs and IDG Capital Partners invested $ 50 million in the company from Boston.
The high expectations are also not quite unjustified. After all, Circle has a lot to offer. One plus is that accounts are insured. For this, Circle has signed an agreement with the private provider Marsh Insurance, the deposits against hacks of the Circle servers. However, this is not a state guarantee. Circle is regulated by FinCEN, a US Treasury Department.
Circle wants to conquer the mainstream market with its offer and therefore mainly on an uncomplicated app, which one connects with bank account or credit card and thus simply Bitcoins acquires. Recently, you can also send US dollars with Circle. According to own representation, the use of inclusive insurance is free of charge. According to the tests one pays however with credit card payment a processing fee and presumably also a slightly worse exchange rate than elsewhere. For this one gets its bitcoins immediately.
In order for this to work, you must first complete the registration. The conditions of use are not very clear on what is needed, especially since I assume there are different requirements for German users than for US citizens. According to user conditions, Circle is given the right to investigate the personal data. For this purpose, it is possible, according to further information, such as e.g. Of the tax ID. What exactly is necessary, however, is not seen. From the report of a very disappointed user, I gather that here also a Selfie of itself with driving license to Circle must send.
Her with the bitcoins
After finally becoming the proud owner of one or more digital walletes, the Bitcoin world is finally open to us. A small but decisive detail is still missing. We have to fill our new wallet of course somehow.
There are two possibilities: you can participate in the production of Bitcoins (Mining) in some way, or you can simply buy them with a different currency at a certain exchange rate.
We have already learned that and how we can produce bitcoins or participate in a mining pool. We do not have to. Just as well, we can easily exchange our euro (or other currencies) into bitcoins. To this end, there are now a number of different platforms. This variant is much simpler compared to the effort to manufacture it by itself.
The search for a suitable platform
In the meantime, there are not many, but very many providers, where you can purchase bitcoins. They differ in many respects from each other.
With some vendors you need on the platform itself its wallet, with others you can transfer the money to your own wallet. In the case of exchange offices (overview) you buy your bitcoins directly from a provider, in marketplaces (overview) you buy with other users. Depending on the provider, different exchange rates and fees are called up.
An important difference is also the question, whether one on the basis of live courses or fixed courses its bitcoins exchanges. Live courses are constantly changing as fixed exchange rates change less frequently. Of course, it also plays a role, whether a platform has many users, that is: high supply and demand.
Of course, the methods of payment differ. In addition to cash and transfer, some providers also allow Bitcoin purchases via credit cards or gift vouchers. For German users, the question is certainly where to get bitcoins for Euro. Bitcoin Charts provides a handy, if not complete, overview.
As always: safety concerns
Safety aspects play an important role. This is known since the big failure of the bitcoin trading platform Mt.Gox in February 2014. The exact circumstances of the robbery are still unclear, but in many cases it is rumored that the scandal lay above all on a lack of safety standards.
In contrast to a wallet, where the keys are stored and how transactions are verified, it is necessary to look at other aspects in a trading platform in order to distinguish good from bad security standards.
Jörg Platzer from Bitcoins, the German federal association, introduced the so-called "proof of reserves" as an important criterion. At the same time, the providers must be able to encrypt at any time cryptographically, to be in possession of the Bitcoins.
I also find other factors, such as trustworthiness, cooperation with bank houses or private insurance companies. Of course, in case of doubt also always a closer look at the web presence of the respective provider. An unprofessional appearance, unclear GTC or a dubious company seat on me in any case deterrent.
Some providers at a glance
Bookmark and Share
Bitcoin_logo_600x150
The Platzhirsch on the German market is Bitcoin.de. Since 2011 one can act with other users Bitcoins. This is not necessarily the fastest, but a comfortable way. An account is created easily. About 2-factor identification and a website that takes it very seriously with logging makes this account a good impression.
To make sure you can get started, you have to verify your bank account and the mobile number. If you do, Bitcoins can trade up to 2,500 euros per calendar year and a maximum of 1,000 euros per month. If you want more, you must register yourself with a complete identification. However, this is only for members who have acted at least 12 bitcoins in 12 months.
The trade takes place on the in-house marketplace. There are supply and demand prices, always with the indication from which land supply and demand originate and whether the user has completely identified itself. Whoever buys a bitcoin then receives the counterdata of the counterparty and has to transfer the money to him. As soon as the seller confirms the payment receipt, one receives his bitcoins. As you can easily imagine, this is not the fastest way. The process takes 2 to 6 days.
Those who do not want to wait so long have the opportunity to participate in the "Express trade". Bitcoin.de now offers this new feature to customers of the Munich Fidor Bank, which has been cooperating for a long time. To be honest, I had always understood this cooperation so far that my bitcoin stocks are also covered by the European Deposit Guarantee Scheme. This is not so. The Bitcoin stocks are expressly excluded under the terms of the GTK. As you can see from the FAQ, no direct payments and withdrawals via Bitcoin.de are possible.
Octopuses
Kraken has developed a well-known name since its launch in 2011. The Bitcoin Exchange from San Francisco is operated by Payward, Inc. In fact, the company has achieved important milestones in recent years. Since September 2013 the XBT, the ISO currency code for bitcoin, which was known until then under BTC, has been oriented. In April 2014, Kraken has also managed to be listed at the official Bloomberg terminal.
Kraken also gained special trust through a successful proof of reserves audit, as well as through the cooperation with the Munich Fidor Bank. Above all, the company has been able to gain a foothold in Europe. Germany is however exempted from the deal. Here the Fidor Bank cooperates with Bitcoin.de.
Kraken is currently not available in English. A simple account is still created quickly, but you can not start with that much. By default, one is classified as animal 0. This means that neither cash nor cash is possible. For this, you need higher animal numbers, but for which certain proofs are necessary.
German users must at least Tier 3 proof and need their personal data, address verification, residence permit as well as a photo of themselves with identification. The large effort of the registration is rewarded with an extensive trading surface. It reminds a bit of an exchange trading account. Accordingly, certain order types can be entered. Limit orders, for example, where you buy only from a certain price automatically or stop loss orders, where positions are automatically sold if they fall below a certain value.
Margin trading, ie the trade in lifting effects, has also been advertised on the website. This allows you to spend more money than is available on the account and has a leverage effect in its speculation. However, this increases the profit potential, as does the risk of loss.
Circle
Widget-1
Circle is a fairly new provider, which has been available in the USA since March 2014 and worldwide since September. Behind them are financially strong donors. In April 2015, Goldman Sachs and IDG Capital Partners invested $ 50 million in the company from Boston.
The high expectations are also not quite unjustified. After all, Circle has a lot to offer. One plus is that accounts are insured. For this, Circle has signed an agreement with the private provider Marsh Insurance, the deposits against hacks of the Circle servers. However, this is not a state guarantee. Circle is regulated by FinCEN, a US Treasury Department.
Circle wants to conquer the mainstream market with its offer and therefore mainly on an uncomplicated app, which one connects with bank account or credit card and thus simply Bitcoins acquires. Recently, you can also send US dollars with Circle. According to own representation, the use of inclusive insurance is free of charge. According to the tests one pays however with credit card payment a processing fee and presumably also a slightly worse exchange rate than elsewhere. For this one gets its bitcoins immediately.
In order for this to work, you must first complete the registration. The conditions of use are not very clear on what is needed, especially since I assume there are different requirements for German users than for US citizens. According to user conditions, Circle is given the right to investigate the personal data. For this purpose, it is possible, according to further information, such as e.g. Of the tax ID. What exactly is necessary, however, is not seen. From the report of a very disappointed user, I gather that here also a Selfie of itself with driving license to Circle must send.
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